To make something worse by adding to it. His financial problems were compounded by his recent job loss.
To calculate interest on both the initial principal and the accumulated interest from previous periods. The bank compounds interest quarterly on savings accounts.
To combine or mix two or more elements or substances. The pharmacist compounded the ingredients to create the medication.
To settle (a debt, claim, or legal matter) by agreement, often by making concessions; to come to terms. The company compounded with its creditors to avoid liquidation.